Flextronics completes acquisition of majority stake in Hughes Software Systems
Oct 20, 2004
Flextronics (Nasdaq: FLEX), announced that it has completed the acquisition of 70% of the outstanding shares of Hughes Software Systems (NSE: HUGHESSOFT), a leading provider of software products and services to telecom infrastructure companies. Approximately 55% of the outstanding shares were acquired from Hughes Network Systems, and approximately 15% were acquired in an open offer that was completed yesterday.
Flextronics has paid approximately US$226.5 million to Hughes Network Systems, Inc., a wholly-owned subsidiary of The DIRECTTV Group, Inc. (NYSE: DTV), for its ownership stake in HSS and approximately US$62.5 million to the shareholders of HSS who participated in the open offer made by Flextronics in accordance with Indian securities regulations.
The addition of HSS products and services makes Flextronics the first EMS company to offer convergent software solutions to fixed and mobile networks for both voice and data.
"With today's HSS acquisition, we now have all the pieces in place to provide a competitively superior, end-to-end outsourcing solution to telecom companies," said Michael E. Marks, chief executive officer of Flextronics. He added, "The addition of world-class software design services from HSS is an important piece of Flextronics' strategy to play a design role in all of the products we manufacture. We could not be more thrilled and we welcome the talented HSS team to our company."
"We are very excited to officially join the Flextronics team and to extend the company's range of design, build and ship capabilities to our customers, which include many of the world's largest telecom companies," stated Arun Kumar, President and Managing Director of HSS. "We look forward to growing with the Flextronics team."